PPP and $1/day - for econ280

This should answer the question that arose in econ280-01 today.

The 2008 annual poverty line in the United States was $21,834 for a family of two adults and two children, or $14.96 per person per day; 13.2 percent of Americans live below this line. India in 2004–05 had two poverty lines, one for rural households of 11.71 rupees per person per day, and one for urban households of 17.71 rupees; at the 2005 PPP exchange rates, these lines are $0.80 and $1.21 per person per day (about a third of that at market exchange rates), and 27.5 percent of the Indian population lives below them. 

 

and here is the entire paper if you are so inclined:

 

http://www.princeton.edu/~deaton/downloads/presidential%20address%2019january%202010%20all.pdf